N-Zone Program SAP NetWeaver 2004s

Bill WillsBI IT Project Mgr

Wawa, Inc.

October 25, 2006

2

Wawa Food Markets

What is a Wawa? “The name is Lenape Indian for Canadian Goose”.

-- Wawa Stats--

• First Wawa store opened in 1964• Convenience Store Chain approx 560 stores• 5 + billion in sales revenue• Stores Range from New Jersey to Virginia• 200+ Super Stores with gasoline• Average gas store dispenses 120,000 gallon per week• Extensive Foodservice offer featuring hot & cold sandwiches• Dairy produces over 20,000 gallons of milk per day• Over 500,000,000 customers served each year

3

History

Since 1993 Wawa has realized the benefits a data warehouse provides. Our legacy systems supported various departmental needs. A integrated system was needed to centralize information and provide “one version of the truth”,

-- Data Warehouse History --

• DSS data warehouse for corporate users• ROI (Retail Operations Intelligence) for store reports• Ross & Khalix systems for Finance reports• Data redundancy• “Spaghetti” architecture • Inconsistent reporting among various systems• Extensive IT & business resources needed to support all systems

4

-- Nzone Project Goals --

NZone

In May of 2005 the NZone project was initiated. The goal of this project was to reengineer our Financial and Retail systems. SAP was selected to replace all the Financial, Retail and Business Intelligence systems at Wawa.

Finance (Phase 1 Go Live May 2006)� SAP FI Module standardized process� Major accounting change from Retail to Cost accounting� Budgeting & Forecasting provided through BW MAP & BPS� Reporting via SAP NetWeaver 2004s BI

Retail (Phase 2 Go Live Sept 2006)� Procurement, MM, F&R, POSDM & SAP Retail� SAP BW POSDM processing millions of rows of data per day� Space Management� Develop new reports using SAP tools and systems linked to SAP ERP modules� Portal based reporting solution for retail stores

5

BW Team

For the NZone project our existing DSS team was structured to support the reporting requirements by functional areas.

-- BW Team Structure --

Finance/MAP& BPS/Security� One full time Wawa resource � Two SAP consultants for MAP/BPS� One SAP consultant for BEX Finance Reporting� One SAP consultant for Security

� Sales & Marketing/Loss Prevention/Sales Audit� Two full time Wawa resources� One SAP consultant� One SAP shadow resource

� Procurement/F&R/MM/DPP� Two full time Wawa resources� One SAP consultant

6

BW Environment

Due to the unique nature of our business BW was highly customized. The volume of data and the frequency of loads requires a specialized data warehouse solution.

-- BW Architecture --

• SAP Hosted environment located at the Newtown Square facility• 125 + Infocubes & Mulitproviders support data from transaction to period

sales• Specialized cube sets to handle sandwich ingredients for true profitability

and forecasting• Finance area mainly standard content • Both BPS & MAP highly customized to suite Wawa’s planning & budgeting

requirements• Historical cube sets provide up to two years of legacy data for historical

reporting• Over 4 million rows will be added daily to the transaction cubes• Infocubes partitioned by time to increase performance• BI Accelerator will be used to optimize query performance• Portal will be main delivery method for store reporting with BEx Analyzer

for corporate BW users

7

Transition Challenges

With the go-live of SAP Financials in May 2006 and ongoing Retail rollout, the BW team experienced both support and development challenges.

-- Transition Challenges --

� Early adopter of SAP NetWeaver 2004s presented numerous technical challenges

� Over 700 + Notes applied (25% of development time spent troubleshooting)� Training was only available in BW 3.5 � Managing the challenge of multiple service pack and front end releases during

ramp up� First Newtown Square Hosted customer� Sizing of machines, hardware configuration & disk space issues� Managing the volume of data process daily � Portal technical issues early on with broadcast and iView reporting� Blueprinting requirements changed during Realization � New SAP client no knowledge of ERP systems and BW � Knowledge Transfer time allocated in Project Plan � New SAP BW Staffing Model� First U.S. SAP hosted BI Accelerator customer

8

Benefits

The new integrated BW solution provides the foundation for consolidated reporting.

-- Benefits Realized --

� Ability to easily integrate Finance and Retail reporting� Consolidates the reporting from 4 stand alone applications to one consolidated

“Enterprise” data warehouse� Provides the business with an adhoc query toolset. For the 1st time Power Users

will have the ability to create their own custom queries� Ability to easily manage versioning of Merchandise plans and Store level budgets� True profitability for foodservice items through integration with store ordering

terminals� Real Time access to sales information� Direct Product Profitability reporting� Portal reporting provides “On Demand” ability for select reports

9

Leanings

The new integrated BW solution provides the foundation for consolidated reporting.

-- Lessons Learned --

� Partnering directly with SAP provided the resources with the right skill sets to support our Retail installation

� Strong relationships between Wawa SAP consultants and developers aided in issue resolution

� Full time business liaisons are needed as team members to validate blueprint requirements, test reports and provide direction during Realization

� Build “Support” into project plan to address system bugs for large upgrades or service packs.

� Allow enough time in project plan to support knowledge transfer� Locate project team in same area� Manage change through a Change Control process� Provide enough time between project phases to properly address support issues� Develop a plan to address staffing (short & long term) along with a strong change

management program� Performance tuning & sizing need to be accomplished prior to Realization

10

Next Steps

Throughout 2007 Wawa will continue to convert stores to the new SAP Retail solution. Continued work on deliverables and building a new support structure will be the focus throughout the year.

-- Next Steps --

� Completion of outstanding Financial reports� Continue working with our Store Operations team to validate and publish retail

reports� Test Adobe Document Services� Work with Hosting to setup BI Accelerator� Start knowledge transfer sessions with SAP Consultants� Acquire SAP AMS resource � Acquire an additional permanent Wawa associate� Performance testing and analysis� Data Archiving strategy� Enhance the job notifications� Mainstream support� HR, Facilities & Warehouse Mgt modules scheduled to be implement after Retail

rollout is completed